Orbite Technologies Inc.

Orbite Technologies Inc.

March 21, 2016 07:30 ET

Orbite Provides Further Update on HPA Plant Financing, Completion and Commissioning

MONTREAL, QUEBEC--(Marketwired - March 21, 2016) - Further to its press release of March 15, 2016, Orbite Technologies Inc. (TSX:ORT)(OTCQX:EORBF) ("Orbite" or the "Company") today provides a further update on the Company's progress towards plant completion and commissioning.

  • As indicated in the Company's March 15 press release, due to additional financing requirements, management has temporarily scaled down the number of external contractors on site to reduce working capital requirements.
  • While this slows down certain construction activities, Orbite employees continue commissioning activities as described in the Company's press releases of March 7 and March 15, 2016.
  • Additionally, Management is reviewing its project execution structure to promptly address deficiencies from its project management and engineering teams.
  • Concurrently, Management is working on a number of financing alternatives with its existing financial partners, including discussions with the Government of Québec and Investissement Québec.
  • Financing alternatives may include leveraging the Company's 2016 Investment Tax Credits, which are estimated at $5.6 million, as security for non-dilutive debt, along similar lines as the Company has managed in the past.

"We would like to reiterate that the current delay is due to slower piping installation and a controlled slowdown in construction until financing is secured, and not related to any technical issues with the process and commissioning," stated Glenn Kelly, CEO of Orbite. "On the contrary, commissioning of the new calcination system is progressing well. While disappointed with the delay, we are engaged in positive discussions with our existing financing partners and are confident of securing the required funding for the completion of the project. We will provide a more detailed overview of operations, financing and timing in our upcoming Q4 conference call, the date of which we will announce this week."

About Orbite

Orbite Technologies Inc. is a Canadian cleantech company whose innovative and proprietary processes are expected to produce alumina and other high-value products, such as rare earth and rare metal oxides, at one of the lowest costs in the industry, and in a sustainable fashion, using feedstocks that include aluminous clay, kaolin, nepheline, bauxite, red mud, fly ash as well as serpentine residues from chrysotile processing sites. Orbite is currently in the process of finalizing its first commercial high-purity alumina (HPA) production plant in Cap-Chat, Québec and has completed the basic engineering for a proposed smelter-grade alumina (SGA) production plant, which would use clay mined from its Grande-Vallée deposit. The Company's portfolio contains 16 intellectual property families, including 29 patents and 101 pending patent applications in 11 different countries and regions. The first intellectual property family is patented in Canada, USA, Australia, China, Japan and Russia. The Company also operates a state of the art technology development center in Laval, Québec, where its technologies are developed and validated.

Forward-looking statements

Certain information contained in this document may include "forward-looking information". Without limiting the foregoing, the information and any forward-looking information may include statements regarding projects, costs, objectives and future returns of the Company or hypotheses underlying these items. In this document, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements, including the raise of sufficient financing to complete the HPA facility and fund the Company's operations, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking statements and information are based on information available at the time and/or the Company management's good-faith beliefs with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company's control. These risks uncertainties and assumptions include, but are not limited to, those described in the section of the Management's Discussion and Analysis (MD&A) entitled "Risk and Uncertainties" as filed on March 31, 2015 on SEDAR, including those under the headings "We will need to raise capital to continue our growth" and "Development Goals and Time Frames".

The Company does not intend, nor does it undertake, any obligation to update or revise any forward-looking information or statements contained in this document to reflect subsequent information, events or circumstances or otherwise, except as required by applicable laws.

Contact Information

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